[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2321 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2321
To provide temporary tax relief for areas damaged by 2011 Southeastern
severe storms, tornados, and flooding, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 23, 2011
Mr. Bachus (for himself, Ms. Sewell, Mr. Brooks, Mr. Bonner, Mr. Rogers
of Alabama, Mr. Long, Mr. Ross of Arkansas, Mr. Harper, Mr. Jones, Mr.
Westmoreland, Mr. Palazzo, Mr. Duncan of Tennessee, Mr. Carnahan, Mrs.
Roby, Mr. Clay, Mr. Austin Scott of Georgia, Mr. Womack, Mr. Crawford,
Mr. Roe of Tennessee, Mrs. Hartzler, Mr. Lucas, Mr. Cole, Mr. Fincher,
Mr. Griffin of Arkansas, Mr. Guthrie, Mr. DesJarlais, and Mr. Nunnelee)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Appropriations, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To provide temporary tax relief for areas damaged by 2011 Southeastern
severe storms, tornados, and flooding, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Southeastern Disaster Tax Relief Act
of 2011''.
SEC. 2. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2011 SOUTHEASTERN
SEVERE STORMS, TORNADOS, AND FLOODING.
(a) In General.--Subject to the modifications described in this
section, the following provisions of or relating to the Internal
Revenue Code of 1986 shall apply to any Southeastern disaster area in
addition to the areas to which such provisions otherwise apply:
(1) GO zone benefits.--
(A) Section 1400N (relating to tax benefits) other
than subsections (d), (e), (g), (h), and (m) thereof.
(B) Section 1400O (relating to education tax
benefits).
(C) Section 1400Q (relating to special rules for
use of retirement funds).
(D) Section 1400R(a) (relating to employee
retention credit for employers).
(E) Section 1400S (relating to additional tax
relief).
(F) Section 1400T (relating to special rules for
mortgage revenue bonds).
(2) Other benefits included in katrina emergency tax relief
act of 2005.--Sections 302, 401, and 405 of the Katrina
Emergency Tax Relief Act of 2005.
(b) Southeastern Disaster Area.--
(1) In general.--For purposes of this section and for
applying the substitutions described in subsections (d) and
(e), the term ``Southeastern disaster area'' means an area--
(A) with respect to which a major disaster has been
declared by the President under section 401 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of severe storms, tornados, or
flooding occurring after April 13, 2011, and before
June 7, 2011, in any of the States of Alabama,
Arkansas, Georgia, Kentucky, Mississippi, Missouri,
North Carolina, Oklahoma, and Tennessee, and
(B) determined by the President to warrant
individual or individual and public assistance from the
Federal Government under such Act with respect to
damages attributable to such severe storms, tornados,
or flooding.
(2) Certain benefits available to areas eligible only for
public assistance.--For purposes of applying this section to
benefits under the following provisions, paragraph (1) shall be
applied without regard to subparagraph (B):
(A) Sections 1400N(f), 1400O, 1400Q, 1400S(a),
1400S(b), and 1400S(d) of the Internal Revenue Code of
1986.
(B) Sections 302, 401, and 405 of the Katrina
Emergency Tax Relief Act of 2005.
(c) References.--
(1) Area.--Any reference in such provisions to the
Hurricane Katrina disaster area or the Gulf Opportunity Zone
shall be treated as a reference to any Southeastern disaster
area and any reference to the Hurricane Katrina disaster area
or the Gulf Opportunity Zone within a State shall be treated as
a reference to all Southeastern disaster areas within the
State.
(2) Items attributable to disaster.--Any reference in such
provisions to any loss, damage, or other item attributable to
Hurricane Katrina shall be treated as a reference to any loss,
damage, or other item attributable to the severe storms,
tornados, or flooding giving rise to any Presidential
declaration described in subsection (b)(1)(A).
(3) Applicable disaster date.--For purposes of applying the
substitutions described in subsections (d) and (e), the term
``applicable disaster date'' means, with respect to any
Southeastern disaster area, the date on which the severe
storms, tornados, or flooding giving rise to the Presidential
declaration described in subsection (b)(1)(A) occurred.
(d) Modifications to 1986 Code.--The following provisions of the
Internal Revenue Code of 1986 shall be applied with the following
modifications:
(1) Tax-exempt bond financing.--Section 1400N(a)--
(A) by substituting ``qualified Southeastern
disaster area bond'' for ``qualified Gulf Opportunity
Zone Bond'' each place it appears, except that in
determining whether a bond is a qualified Southeastern
disaster area bond, paragraph (2)(A)(i) shall be
applied by only treating costs as qualified project
costs if--
(i) in the case of a project involving a
private business use (as defined in section
141(b)(6)), either the person using the
property suffered a loss in a trade or business
attributable to the severe storms, tornados, or
flooding giving rise to any Presidential
declaration described in subsection (b)(1)(A)
or is a person designated for purposes of this
section by the Governor of the State in which
the project is located as a person carrying on
a trade or business replacing a trade or
business with respect to which another person
suffered such a loss, and
(ii) in the case of a project relating to
public utility property, the project involves
repair or reconstruction of public utility
property damaged by such severe storms,
tornados, or flooding, and
(B) by substituting ``any State in which a
Southeastern disaster area is located'' for ``the State
of Alabama, Louisiana, or Mississippi'' in paragraph
(2)(B),
(C) by substituting ``designated for purposes of
this section (on the basis of providing assistance to
areas in the order in which such assistance is most
needed)'' for ``designated for purposes of this
section'' in paragraph (2)(C),
(D) by substituting ``January 1, 2018'' for
``January 1, 2012'' in paragraph (2)(D),
(E) in paragraph (3)(A)--
(i) by substituting ``$1,000'' for
``$2,500'', and
(ii) by substituting ``before the earliest
applicable disaster date for Southeastern
disaster areas within the State'' for ``before
August 28, 2005'',
(F) by substituting ``qualified Southeastern
disaster area repair or construction'' for ``qualified
GO Zone repair or construction'' each place it appears,
(G) by substituting ``after the date of the
enactment of the Southeastern Disaster Tax Relief Act
of 2011 and before January 1, 2018'' for ``after the
date of the enactment of this paragraph and before
January 1, 2012'' in paragraph (7)(C), and
(H) by disregarding paragraph (8) thereof.
(2) Advance refundings of certain tax-exempt bonds.--
Section 1400N(b)--
(A) by substituting ``after the date of the
enactment of the Southeastern Disaster Tax Relief Act
of 2011 and before January 1, 2017'' for ``after the
date of the enactment of this section and before
January 1, 2011'' in paragraphs (1) and (2),
(B) by substituting ``the applicable disaster
date'' for ``August 28, 2005'' in paragraphs (3) and
(5)(A),
(C) by substituting ``any State in which a
Southeastern disaster area is located,'' for ``State of
Alabama, Louisiana, or Mississippi,'', and
(D) by substituting the following paragraph for
paragraph (4) thereof:
``(4) Aggregate limit.--The maximum aggregate face amount
of bonds which may be designated under this subsection by the
Governor of a State shall not exceed 50 percent of the
aggregate face amount of bonds which could otherwise be so
designated.''.
(3) Low-income housing credit.--Section 1400N(c)--
(A) only with respect to calendar years 2011, 2012,
and 2013,
(B) by substituting ``Disaster Recovery Assistance
housing amount'' for ``Gulf Opportunity housing
amount'' each place it appears,
(C) in paragraph (1)(B)--
(i) by substituting ``$8.00'' for
``$18.00'', and
(ii) by substituting ``before the earliest
applicable disaster date for Southeastern
disaster areas within the State'' for ``before
August 28, 2005'', and
(D) determined without regard to paragraphs (2),
(3), (4), (5), and (6) thereof.
(4) Expensing for certain demolition and clean-up costs.--
Section 1400N(f)--
(A) by substituting ``qualified Disaster Recovery
Assistance clean-up cost'' for ``qualified Gulf
Opportunity Zone clean-up cost'' each place it appears,
(B) by substituting ``beginning on the applicable
disaster date and ending on December 31, 2013'' for
``beginning on August 28, 2005, and ending on December
31, 2007'' in paragraph (2), and
(C) by treating costs as qualified Disaster
Recovery Assistance clean-up costs only if the removal
of debris or demolition of any structure was necessary
due to damage attributable to the severe storms,
tornados, or flooding giving rise to any Presidential
declaration described in subsection (b)(1)(A).
(5) Special rules for small timber producers.--Section
1400N(i)--
(A) by substituting ``the applicable disaster
date'' for ``August 28, 2005'' in paragraphs
(4)(B)(i)(I) and (5)(A)(i)(I),
(B) by disregarding subclauses (II) and (III) of
paragraphs (4)(B)(i) and (5)(A)(i),
(C) by substituting ``January 1, 2014'' for
``January 1, 2008'' in paragraph (5)(A)(ii)(I), and
(D) by substituting ``January 1, 2014'' for
``January 1, 2007'' in paragraph (5)(A)(ii)(I).
(6) Special rule for public utility casualty losses.--
Section 1400N(j), by substituting ``Southeastern disaster
area'' for ``Gulf Opportunity Zone'' each place it appears.
(7) Treatment of net operating losses attributable to
disaster losses.--Section 1400N(k)--
(A) by substituting ``qualified Disaster Recovery
Assistance loss'' for ``qualified Gulf Opportunity Zone
loss'' each place it appears,
(B) by substituting ``after the day before the
applicable disaster date, and before January 1, 2014''
for ``after August 27, 2005, and before January 1,
2008'' each place it appears,
(C) by substituting ``the applicable disaster
date'' for ``August 28, 2005'' in paragraph
(2)(B)(ii)(I),
(D) by substituting ``qualified Disaster Recovery
Assistance property'' for ``qualified Gulf Opportunity
Zone property'' in paragraph (2)(B)(iv), and
(E) by substituting ``qualified Disaster Recovery
Assistance casualty loss'' for ``qualified Gulf
Opportunity Zone casualty loss'' each place it appears.
(8) Credit to holders of tax credit bonds.--Section
1400N(l)--
(A) by substituting ``Southeastern tax credit
bond'' for ``Gulf tax credit bond'' each place it
appears,
(B) by substituting ``any State in which a
Southeastern disaster area is located or any
instrumentality of the State'' for ``the State of
Alabama, Louisiana, or Mississippi'' in paragraph
(4)(A)(i),
(C) by substituting ``after December 31, 2011 and
before January 1, 2013'' for ``after December 31, 2005,
and before January 1, 2007'',
(D) by substituting ``shall not exceed $100,000,000
for any State with an aggregate population located in
all Southeastern disaster areas within the State of at
least 2,000,000, $50,000,000 for any State with an
aggregate population located in all Southeastern
disaster areas within the State of at least 1,000,000
but less than 2,000,000, and zero for any other State.
The population of a State within any area shall be
determined on the basis of the most recent census
estimate of resident population released by the Bureau
of Census before the earliest applicable disaster date
for Southeastern disaster areas within the State.'' for
``shall not exceed'' and all that follows in paragraph
(4)(C), and
(E) by substituting ``the earliest applicable
disaster date for Southeastern disaster areas within
the State'' for ``August 28, 2005'' in paragraph
(5)(A).
(9) Treatment of public utility property disaster losses.--
Section 1400N(o), by substituting ``Southeastern disaster
area'' for ``Gulf Opportunity Zone'' in paragraph (2)(A).
(10) Education tax benefits.--Section 1400O, by
substituting ``2011 or 2012'' for ``2005 or 2006''.
(11) Special rules for use of retirement funds.--Section
1400Q--
(A) by substituting ``qualified Disaster Recovery
Assistance distribution'' for ``qualified hurricane
distribution'' each place it appears,
(B) by substituting ``on or after the applicable
disaster date and before January 1, 2013'' for ``on or
after August 25, 2005, and before January 1, 2007'' in
subsection (a)(4)(A)(i),
(C) by substituting ``the applicable disaster
date'' for ``August 28, 2005'' in subsections
(a)(4)(A)(i) and (c)(3)(B),
(D) by disregarding clauses (ii) and (iii) of
subsection (a)(4)(A) thereof,
(E) by substituting ``qualified storm damage
distribution'' for ``qualified Katrina distribution''
each place it appears,
(F) by substituting ``after the date which is 6
months before the applicable disaster date and before
the date which is the day after the applicable disaster
date'' for ``after February 28, 2005, and before August
29, 2005'' in subsection (b)(2)(B)(ii),
(G) by substituting ``the Southeastern disaster
area, but not so purchased or constructed on account of
severe storms, tornados, or flooding giving rise to the
designation of the area as a disaster area'' for ``the
Hurricane Katrina disaster area, but not so purchased
or constructed on account of Hurricane Katrina'' in
subsection (b)(2)(B)(iii),
(H) by substituting ``beginning on the applicable
disaster date and ending on the date which is 5 months
after the date of the enactment of the Southeastern
Disaster Tax Relief Act of 2011'' for ``beginning on
August 25, 2005, and ending on February 28, 2006'' in
subsection (b)(3)(A),
(I) by substituting ``qualified storm damage
individual'' for ``qualified Hurricane Katrina
individual'' each place it appears,
(J) by substituting ``December 31, 2012'' for
``December 31, 2006'' in subsection (c)(2)(A),
(K) by disregarding subparagraphs (C) and (D) of
subsection (c)(3) thereof,
(L) by substituting ``beginning on the date of the
enactment of the Southeastern Disaster Tax Relief Act
of 2011 and ending on December 31, 2012'' for
``beginning on September 24, 2005, and ending on
December 31, 2006'' in subsection (c)(4)(A)(i),
(M) by substituting ``the applicable disaster
date'' for ``August 25, 2005'' in subsection
(c)(4)(A)(ii), and
(N) by substituting ``January 1, 2013'' for
``January 1, 2007'' in subsection (d)(2)(A)(ii).
(12) Employee retention credit for employers affected by
severe storms, tornados, and flooding.--Section 1400R(a)--
(A) by substituting ``$23,400'' for ``$6,000'' in
paragraph (1),
(B) by substituting ``the applicable disaster
date'' for ``August 28, 2005'' each place it appears,
(C) by substituting ``January 1, 2012'' for
``January 1, 2006'' both places it appears, and
(D) only with respect to eligible employers who
employed an average of not more than 200 employees on
business days during the taxable year before the
applicable disaster date.
(13) Temporary suspension of limitations on charitable
contributions.--Section 1400S(a), by substituting the following
paragraph for paragraph (4) thereof:
``(4) Qualified contributions.--
``(A) In general.--For purposes of this subsection,
the term `qualified contribution' means any charitable
contribution (as defined in section 170(c)) if--
``(i) such contribution--
``(I) is paid during the period
beginning on the earliest applicable
disaster date for all States and ending
on December 31, 2011, in cash to an
organization described in section
170(b)(1)(A), and
``(II) is made for relief efforts
in 1 or more Southeastern disaster
areas,
``(ii) the taxpayer obtains from such
organization contemporaneous written
acknowledgment (within the meaning of section
170(f)(8)) that such contribution was used (or
is to be used) for relief efforts in 1 or more
Southeastern disaster areas, and
``(iii) the taxpayer has elected the
application of this subsection with respect to
such contribution.
``(B) Exception.--Such term shall not include a
contribution by a donor if the contribution is--
``(i) to an organization described in
section 509(a)(3), or
``(ii) for establishment of a new, or
maintenance of an existing, donor advised fund
(as defined in section 4966(d)(2)).
``(C) Application of election to partnerships and s
corporations.--In the case of a partnership or S
corporation, the election under subparagraph (A)(iii)
shall be made separately by each partner or
shareholder.''.
(14) Suspension of certain limitations on personal casualty
losses.--Section 1400S(b)(1), by substituting ``the applicable
disaster date'' for ``August 25, 2005''.
(15) Special rule for determining earned income.--Section
1400S(d)--
(A) by treating an individual as a qualified
individual if such individual's principal place of
abode on the applicable disaster date was located in a
Southeastern disaster area,
(B) by treating the applicable disaster date with
respect to any such individual as the applicable date
for purposes of such subsection, and
(C) by treating an area as described in paragraph
(2)(B)(ii) thereof if the area is a Southeastern
disaster area only by reason of subsection (b)(2) of
this section (relating to areas eligible only for
public assistance).
(16) Adjustments regarding taxpayer and dependency
status.--Section 1400S(e), by substituting ``2011 or 2012'' for
``2005 or 2006''.
(17) Special rules for mortgage revenue bonds.--Section
1400T, by substituting ``2016'' for ``2010''.
(e) Modifications to Katrina Emergency Tax Relief Act of 2005.--The
following provisions of the Katrina Emergency Tax Relief Act of 2005
shall be applied with the following modifications:
(1) Additional exemption for housing displaced
individual.--Section 302--
(A) by substituting ``2011 or 2012'' for ``2005 or
2006'' in subsection (a) thereof,
(B) by substituting ``Southeastern displaced
individual'' for ``Hurricane Katrina displaced
individual'' each place it appears, and
(C) by treating an area as a core disaster area for
purposes of applying subsection (c) thereof if the area
is a Southeastern disaster area without regard to
subsection (b)(2) of this section (relating to areas
eligible only for public assistance).
(2) Exclusion of certain cancellation of indebtedness
income.--Section 401--
(A) by treating an individual whose principal place
of abode on the applicable disaster date was in a
Southeastern disaster area (determined without regard
to subsection (b)(2) of this section) as an individual
described in subsection (b)(1) thereof, and by treating
an individual whose principal place of abode on the
applicable disaster date was in a Southeastern disaster
area solely by reason of subsection (b)(2) of this
section as an individual described in subsection (b)(2)
thereof,
(B) by substituting ``the applicable disaster
date'' for ``August 28, 2005'' both places it appears,
and
(C) by substituting ``January 1, 2013'' for
``January 1, 2007'' in subsection (e).
(3) Extension of replacement period for nonrecognition of
gain.--Section 405, by substituting ``on or after the
applicable disaster date'' for ``on or after August 25, 2005''.
SEC. 3. RESCISSION OF UNSPENT AND UNCOMMITTED FEDERAL FUNDS.
(a) In General.--Notwithstanding any other provision of law, of all
available unobligated Federal funds, $12,000,000,000 in appropriated
discretionary unexpired funds are rescinded.
(b) Implementation.--Not later than 60 days after the date of
enactment of this Act, the Director of the Office of Management and
Budget shall--
(1) identify the accounts and amounts rescinded to
implement subsection (a); and
(2) submit a report to the Secretary of the Treasury and
Congress of the accounts and amounts identified under paragraph
(1) for rescission.
(c) Exception.--This section shall not apply to the unobligated
Federal funds of the Department of Defense or the Department of
Veterans Affairs.
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